Insurance letter was wrong
February 23, 2004
A letter you published on Feb. 10, “MEDPAY crucial in accidents,” is fraught with factual errors.
As a financial services professional with over 35 years experience, I was concerned that your readership not be misled by incorrect information in the letter written by Scott Tesoro, D.C., as follows:
1. First and foremost, before purchasing any consumer goods or services, each individual should seek the assistance of the appropriate advisor to help identify their individual needs. Making a blanket wholesale statement of need for all consumers does a disservice and may be harmful.
2. Colorado has not gone from pip to tort. Colorado has always been a tort state. Legislation effective in 1974 added, temporarily (albeit for 30 years), mandatory PIP (No-Fault) medical coverage. This coverage expired/sunsetted on July 1, 2003.
3. Insurance companies may not “haggle” with claimants. The unfair claims practices guidelines of the insurance division of the state of Colorado require a “prompt and fair manner” of settling claims.
4. “Relying on health insurance is not a good option.” This statement is inflammatory, unfounded and does not come from a licensed insurance professional who has the needed comprehensive knowledge base. Again, as I stated earlier, each individual’s needs determine the goods and services one purchases, in this case the need for medical payments coverage on the automobile insurance policy.
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5. “Rehabilitation care, the most likely type of care you will need after an accident.” Factually incorrect. Over the last 30 years, the majority of PIP payments made have been non-rehabilitation expenses.
6. Again, since the author of the Feb. 10 letter is not a licensed insurance broker, how can he make the statement that “almost all insurance plans in the valley have extremely limited benefit for rehabilitation care?” Without the proper licensure and a contract with all insurers represented in the valley, Mr. Tesoro is not in a position to make this blanket assertion.
What is important is that all consumers continually evaluate their financial needs and consult the professional expert in each and every financial discipline to which they are exposed on a regular basis.
Hoping this information assists your readership.
certified financial planner